Financial constraints, followed by fears of job cuts, premium loss and uncertainty of seamless premium, are top reasons that bar ready-made garment workers from participating in Universal Pension Scheme (UPS), according to a latest study.
About 99 per cent of the surveyed RMG workers were found uninterested in the UPS. Majority or 90.6 per cent of workers cited financial constraints and 6.7 per cent expressed concerns over the scheme's long-term sustainability.
Some 2.7 per cent of the surveyed workers have been found unaware of the UPS, it showed.
The study, however, has found that only 1.3 per cent of the surveyed workers have so far enrolled in 'Progoti' scheme which was introduced in August 2023.
Md Monirul Islam, deputy director of the Bangladesh Institute of Labour Studies (BILS), shared the study findings conducted on 200 garment workers at an event held at Shrama Bhaban in the capital on Monday.
With the support from the Netherlands-based organisation Mondiaal FNV, BILS is implementing a project titled 'Ensuring decent work in the ready-made garment (RMG) sector through social dialogue'.
As part of this initiative, BILS conducted the study between September and December 2024, titled 'Universal Pension Scheme: Exploration of Potential Scopes for RMG Workers' Social Protection in Bangladesh'.
Explaining the challenges, Mr Islam in his study findings showed poor education against a fully automated and digitalised pension system while Tk 2,000 minimum premium were identified as high for private sector workers.
There is no alternative for income shocks like job loss, factory lay-off, industrial injuries or deaths, occupational sickness, diseases and firing incidents.
It also identified the requirement of 10-year continuation of premium as challenging as the study found only 8.0 per cent work in a factory for 10 years.
The government has introduced four types of UPS, among which the 'Progoti' scheme allows for the inclusion of RMG workers.
Under this scheme, contributions are equally shared, with 50 per cent paid by workers and 50 per cent by employers.
The study primarily focused on the RMG sector with several key objectives with the aim of evaluating the government-declared UPS.
It also analysed the potential benefits, structure, process, and mechanisms of the UPS to ensure social protection for RMG workers while identifying existing gaps.
The study also reviewed national and international policies and initiatives, highlighting best practices regarding employer contributions to social protection for RMG workers.
It made a number of proposals, including a reduction in the minimum premium amount like 'Surokkha' scheme, mandatory institutional participation and employer contribution while 30 per cent of respondents suggested mandatory government's contribution.
The government can provide matching of contributions like higher benefit levels could be subsidised via minimum contribution.
A redistribution of benefit between higher and lower earners can be considered, it suggested proposing alternatives like allowing withdrawal and loan facility during income shocks, temporary suspension of contributions for a shock and enable job changes having a same pension.
AKM Ashraf Uddin, executive director of the Bangladesh Labour Foundation, said gaining trust in all, especially the workers, is a major challenge for successful scheme operation as there is no job security and it makes workers unwilling.
Syed Saad Hussain Gilani, chief technical adviser of ILO Employment Injury Scheme (EIS) in Bangladesh, said ILO informal assessment found a number of gaps in UPS as it has been developed without consultation with the stakeholders concerned despite its good intention.
He suggested proper diagnostic study in this regard emphasising social dialogue.
Razequzzman Ratan, a member of the Labour Reform Commission, said the main issue is a financial capacity, as workers are currently struggling and have no time to think about the future.
AKM Nasim, also a member of the LRC, stressed the need for transparent management process, saying workers would not benefit.
"A major concern is how much workers are willing to contribute to this fund, as in some cases, it may require about one-fifth of their wages," he said, suggesting that initially, the scheme could be started with contributions from the government and employers to building workers' confidence.
BILS secretary Shakil Akhter Chowdhury moderated the event with BILS vice-chairman Anwar Hossain in the chair.
Bangladesh Employers' Federation secretary general and CEO Farooq Ahmed also spoke.
Later, the study's findings handed over to LRC chairman Syed Sultan Uddin Ahmed.
munni_fe@yahoo.com
